It was the night of round number failure…Dow hit 16,000,NASDAQ hit 4000,S&P hit 1800 and all backed off after hawkish comments from one of the Fed talking heads and the legend that is iCahn dared to suggest on TV that things were getting a little out of control..well someone had to say it…anyway it was enough to knock the market off its highs and take some of the heat out of the market which is trading at 17 times earnings..somewhat above the average 14 times.
If I was the Uncle Ben I would be standing on an aircraft carrier with a big banner saying “MISION ACCOMPLISHED”! Dow 16,000!!!NASDAQ 4000!!! Done my bit..off to Princetown!
Here are Carl’s words… says he is “very cautious” about the US stock market, saying he could see a “big drop” because earnings at many companies are fuelled more by low borrowing costs than management’s efforts to boost results.16,000 is a big one!!!
Even one of the Fed Chiefs suggested that the Fed should keep on printing in case of Unforeseen shocks to the system!!
*DUDLEY SAYS `GROWTH IN 2013 HAS BEEN DISAPPOINTING’…Ill say..$85bn and still no browth!!
*DUDLEY SEES `NASCENT SIGNS’ ECONOMY `MAY BE DOING BETTER’
*DUDLEY `MORE HOPEFUL’ ECONOMY REBOUNDING AS FISCAL DRAG WANES…. until the next Debt Ceiling talks in February!!
Anyway expect another muted day today as the IPOs pile up before Xmas sucking some of the life out of the market especially in the small caps.Lots of funding requirements coming up with NINE and Dick plus Veda all out there at the moment.
Idea of the Day
Bio techs can be a bit of a graveyard but the strength of the US sector and the hunt for hard to find value may shine the light on this sector. MSB is one of my favourites and this morning has release a positive announcement..these guys are at the cutting edge and quality management..if you are looking for a stock for 2014 and we all will be these could be in the shopping cart..our recent float RGS which came on to the market at 25 cents has doubled recently after receiving approval for its Canine cancer vaccine in the US…good stuff for those clients that were in on the float..100% return in a month or so..can’t do that with a bank deposit!!
Things to make me go mmmm!!
Bitcon just keeps going higher and higher..not bad for a made up currency
And the switch is on..truly silly….one is a made up digital currency used by drug dealers ..the other one takes years and billions to get out of the ground and then refine and store in a vault below ground..again!
And the epic fail that seems to be Obamacare…
US homebuilder confidence Drops To 5 Month Low!!!
David Jones’s: biggest shareholders, Perpetual, has declared it plans to vote against the retailer’s remuneration report at this week’s annual meeting as part of a protest against chairman Peter Mason. Perpetual portfolio manager Vince Pezzullo met Mr Mason on Monday as part of the chairman’s efforts to connect with shareholders ahead of the meeting, and soothe concerns over CEO Paul Zahra’s upcoming departure.
Fortescue Metals Group: Pitching has ramped up around potential block trades in Fortescue, after the market easily absorbed a $503 million trade and as hedge funds look for a way to close out short positions. Fortescue’s story is one of the most remarkable of 2013. From a debt-heavy miner seeking a $3 billion asset sale to a stock up almost 30 per cent and being talked about as a yield play for the 2015 and 2016 financial years.
Veda Group: will eye acquisitions when it returns to the ASX, after raising $341 million amid a “mania” to float before Christmas. Ahead of its annual investor conference in Sydney today, yesterday a prospectus was lodged for the IPO of Veda, the nation’s biggest consumer and commercial credit bureau. The IPO has been priced at $1.25 a share to raise $341.1m, giving Veda a market value of about $1 billion,
Vocation: which is chaired by former Treasurer John Dawkins, lodged a prospectus for its IPO on Monday after securing commitments for 134 million shares at the $1.89 offer price. Vocation chief executive Mark Hutchinson, who set up one of Vocation’s three businesses AVANA, is set to be one of the largest shareholders with 4.6 million shares
And finally….. Carol, a blonde city girl, marries a Warrnambool l dairy farmer.
One morning, on his way out to check on the cows, farmer John says to Carol, ‘The insemination man is coming over to impregnate one of our cows today. I drove a nail into the rail above the cow’s stall in the barn. You show him where the cow is when he gets here, OK?’
So then the farmer leaves for the fields.
After a while, the insemination man arrives and knocks on the front door.
Carol takes him down to the barn. They walk along the row of cows and when she sees the nail, she tells him, ‘This is the one…right here.’
Terribly impressed by what he seemed to think just might be another ditzy blonde, the man asks,
‘Tell me lady, how did you know this is the cow to be bred?’
‘That’s simple; by the nail over its stall’, Carol explains very confidently.
Then the man asks, ‘What’s the nail for?’
She turns and starts to walk away and with complete confidence, says over her shoulder, ……
‘I assume it’s to hang your trousers on.’
Have a great day
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